Signaling Hypothesis Research Articles

Alzheimer's Disease and Protein Kinases.

Alzheimer's disease (AD) is the most common neurodegenerative disorder and accounts for more than 60-80% of all cases of dementia. Loss of pyramidal neurons, extracellular amyloid beta (Abeta) accumulated senile plaques, and neurofibrillary tangles that contain hyperphosphorylated tau constitute the main pathological alterations in AD.Synaptic dysfunction and extrasynaptic N-methyl-D-aspartate receptor (NMDAR) hyperactivation contributes to excitotoxicity in patients with AD. Amyloid precursor protein (APP) and Abeta promoted neurodegeneration develop through the activation of protein kinase signaling cascade in AD. Furthermore, ultimate neuronal death in AD is under control of protein kinases-related signaling pathways. In this chapter, critical check-points within the cross-talk between neuron and protein kinases have been defined regarding the initiation and progression of AD. In this context, amyloid cascade hypothesis, neuroinflammation, oxidative stress, granulovacuolar degeneration, loss of Wnt signaling, Abeta-related synaptic alterations, prolonged calcium ions overload and NMDAR-related synaptotoxicity, damage signals hypothesis and type-3 diabetes are discussed briefly.In addition to clinical perspective of AD pathology, recommendations that might be effective in the treatment of AD patients have been reviewed.

Strategic reactions to information content of dividend change: applying BCG growth share matrix when signalling hypothesis identified

The signaling hypothesis has been vastly under investigation for many years. There are two attitudes towards this phenomenon; some believe that firms increase (decrease) their dividend to signal about the future increases in earnings due to asymmetric information that managers have. Adversely, others believe that firms usually increase their dividends when they do not have further lucrative projects with positive net present values. Although there is a lot of empirical testing about this hypothesis that has been placed, there is no investigation about agency costs and cheating potential signaling hypothesis can provide for managers to cheat shareowners and market if it happens in the stock market. Through this article, we will test the signaling hypothesis for the firms listed in Tehran Stock Exchange, a rather volatile emerging market. We concluded that while dividend increases have no significant information content about future earnings, dividend decreases have meaningful information content about decreasing earning in the future. We use different scenarios that managers can react if the signaling hypothesis occurs and analyze the agency cost these scenarios bear on shareowners.

Attractiveness and distinctiveness between speakers' voices in naturalistic speech and their faces are uncorrelated.

Facial attractiveness has been linked to the averageness (or typicality) of a face and, more tentatively, to a speaker's vocal attractiveness, via the ‘honest signal’ hypothesis, holding that attractiveness signals good genes. In four experiments, we assessed ratings for attractiveness and two common measures of distinctiveness (‘distinctiveness-in-the-crowd’, DITC and ‘deviation-based distinctiveness', DEV) for faces and voices (simple vowels, or more naturalistic sentences) from 64 young adult speakers (32 female). Consistent and substantial negative correlations between attractiveness and DEV generally supported the averageness account of attractiveness, for both voices and faces. By contrast, and indicating that both measures of distinctiveness reflect different constructs, correlations between attractiveness and DITC were numerically positive for faces (though small and non-significant), and significant for voices in sentence stimuli. Between faces and voices, distinctiveness ratings were uncorrelated. Remarkably, and at variance with the honest signal hypothesis, vocal and facial attractiveness were also uncorrelated in all analyses involving naturalistic, i.e. sentence-based, speech. This result pattern was confirmed using a new set of stimuli and raters (experiment 5). Overall, while our findings strongly support an averageness account of attractiveness for both domains, they provide no evidence for an honest signal account of facial and vocal attractiveness in complex naturalistic speech.

Do market differences matter on dividend policy?

We investigate the dividend policies of firms in the United Kingdom to understand whether firms in different markets use dividends as a signaling or disciplining device. The sample consists of 1247 firms from the highly regulated Main Market (MAIN) and relatively unregulated Alternative Investment Market (AIM) for the period 2002–2017. We find that firms in AIM pay lower dividends than their MAIN counterparts. However, during turbulence, AIM firms decrease dividends lower than MAIN firms. In line with the signaling hypothesis, AIM firms with increased profitability are more likely to increase dividends. These results suggest that AIM firms depend more on the signaling feature of the dividends, whereas MAIN firms use dividends as a disciplining device to limit managerial discretion. Specifically, we find that AIM firms facing bigger agency problems pay lower dividends compared to other AIM firms, in line with the outcome view of agency theory.

Are Emerging Markets Efficient? Evidence from Informational Content of Dividend Changes in Polish Stock Market

Purpose: The objective of this paper is to present the dividend signaling hypothesis, in particular, an empirical analysis of the relationship between the current changes in the level of a dividend paid (t0) and the future profitability of the companies. Design/Methodology/Approach: The dividend signaling hypothesis is empirically tested using the dynamic causality analysis based on the regression approach monitoring for expected earnings changes and past returns with a set of linear and non-linear controls. The conducted analyses comprised the domestic companies quoted on the Warsaw Stock Exchange, which paid dividends in 2001-2016. Findings: The empirical results confirm that in the audited period, dividend decisions bring some information about the current situation (t = 0) and future (t = 1, t = 2) of the analyzed companies. It is also worth noting that among the analyzed indicators, the gross profit ratio (PBT) referred either to the market value or the book value of equity was most often in the statistically significant analyzes. In general, our results confirm the validity of the signaling hypothesis in the case of continuation-growth and initiation of payments in the Polish capital market as in the developed market. Practical Implications: We can say that investors, based on signals coming out of dividends advertisements, may conclude the future-income potential of a given company. Originality/value: As mentioned, the gross profit ratio (PBT) referred either to the market value or the book value of equity was most often in the statistically significant analyses. Thus, it seems that, contrary to the adopted assumptions in the literature, gross profit (PBT) in dividend signaling is more important than net profit (E).

Relationships of song structure to phylogenetic history, habitat, and morphology in the vireos, greenlets, and allies (Passeriformes: Vireonidae)

Acoustic signals show immense variation among passerines, and several hypotheses have been proposed to explain this diversity. In this study, we tested, for the first time, the relationships of song structure to phylogeny, habitat type, and morphology in the vireos and allies (Vireonidae). Every measure of song structure considered in this study had moderate and significant phylogenetic signal. Furthermore, two song-constraining morphological traits, bill shape and body mass, also exhibited significant phylogenetic signal. Song length showed the largest within-clade similarity; longer songs were highly conserved in part of the greenlet (Hylophilus) clade, whereas shorter songs characterized the remaining seven genera. We found no differences in song structure among vireonids living in different habitat types. However, vireonids with shorter, stouter bills and larger bodies sang songs with lower minimum and maximum peak frequency, compared with species with longer, thinner bills and smaller bodies. We conclude that Vireonidae song evolution is driven partially by phylogenetically conserved morphological traits. Our findings support the phylogenetic signal and morphological constraints hypotheses explaining structural diversity in avian acoustic signals.

The dividend signaling hypothesis and the corporate life cycle

PurposeThis paper aims to examine the relationship between the dividend signaling hypothesis and a firm's life cycle.Design/methodology/approachThe authors use Dickinson's (2011) methodology to develop a proxy for the firm's stages in its life cycle and to examine the relationship between dividends and future earnings following a nonlinear setting.FindingsUsing a sample of US firms during the 2000–2014 period, the authors find that the signaling hypothesis can be dependent on firm-specific characteristics, such as life cycle stages. The authors report that the relationship between dividend changes and subsequent earnings changes is different for different life stages. They also find that changes in the amount of the dividend provide some information about future earnings, especially during the early (introductory and growth) stages. These results are consistent with the use of earnings or return on assets as the dependent variables in models of earnings expectations.Originality/valueThe authors believe that this is the first time that the dividend signaling hypothesis has been linked to the life cycle of the firm.

Do Payout Policies and Channel Preferences of Banking Industries Shift during the Tranquil Periods? Evidence from Emerging Market

This study investigates whether the dividend policy (the decision to distribute funds,and the distribution channel preferences) of the bankingsector of Pakistan isaffectedduring any periods of domesticand globalfinancialcrisis. Using a sample of publically listed commercial banks,betweenthe periods of2002 till 2015, this research document that, unlike other countries, the banks in Pakistan fail toindicate adecline in the level of fundsthat are distributedto the investors. Even though the importance of the other means of distribution has increased over time, a major portion ofthe total payoutis still covered bythecash dividends. Moreover, the results of the multinomial logit model,demonstrate that thepayout policy of the commercial bankslisted on the PSX,is not influencedby the global financial crisis. Furthermore, the analysis reveals that more liquid, profitable,and growthoriented bankshave a higher tendencyto pay dividends,thantheotherbanks that do not fall in this category. The empirical results alsoindicate that the signaling hypothesis is a relevant economic phenomenon. These findings provide insights to different stakeholders in developing the relevant policiesneededto cope up with crisis situations,such as the current ongoing Coronavirus pandemic

Reduced Complexity Detection of Narrowband Secondary Synchronization Signal for NB-IoT Communication Systems

Narrowband Internet of Things is one of the most promising technologies to support low cost, massive connection, deep coverage, and low power consumption. In this paper, a computationally efficient narrowband secondary synchronization signal detection method is proposed in the narrowband Internet of Things system. By decoupling the detection of complementary sequence and Zadoff–Chu sequence that make up the synchronization signal sequence, the search space of narrowband secondary synchronization signal hypotheses is reduced. Such a design strategy along with the use of the symmetric property of synchronization signals allows reduced-complexity synchronization signal detection in the narrowband Internet of Things system. Both theoretical and simulation results are provided to verify the usefulness of the proposed detector. It is shown via simulation results that the complexity of the proposed detection method is significantly reduced while producing some performance degradation, compared to the conventional detection method.

The Information Content in Bonus Issue Announcements : Evidence from the Indian Corporate Sector

The bonus issue has remained the center of attraction among researchers within the finance literature due to its puzzling nature. This study tried to revalidate two hypotheses namely, information signalling hypothesis and liquidity hypothesis in the Indian stock market in context of bonus issue announcements. Price reaction and trading volume on and around the announcement as well as ex-date were investigated during the study period (2004 – 2016). The study also measured the market depth through augmented liquidity tests around these two dates. The findings of the study observed significant positive abnormal reaction on the day of announcement as well as ex-bonus date. The presence of significant positive abnormal reaction in the pre-announcement period indicated the existence of insider trading and/or information leakages. The significant negative price reaction observed during the post ex-bonus day indicated the presence of bonus stripping practices in the study period. The study observed abnormally high trading volume around the announcement date and the ex-bonus date. The augmented liquidity tests, that is, stock’s trading volume, stock’s relative trading volume, and liquidity ratio revealed that stocks traded on NSE experienced enhanced liquidity in the post bonus issue period. The empirical findings of the research were in line with the information signalling hypothesis and liquidity hypothesis.

Signaling through corporate philanthropy

We deconstruct corporate philanthropy donations (CPDs) into expected CPD and excess CPD and examine their impact on firms' future market performance. We also examine various moderating effects, including political connection and market development. Using a data set comprising 13,939 firm-year observations for firms with A-shares listed on the Shenzhen and Shanghai Stock Exchanges between 2003 and 2014, the study offers three key findings. First, consistent with the signaling hypothesis, we find a positive association between excess CPD and market returns; however, expected CPD is not related to market returns. Second, the interaction of expected CPD and state-owned enterprises is negatively related to firms' future market reactions. This is because investors perceive these enterprises' CPD activities as forced apportionment. Third, market reactions improve if firms are located in less developed regions and contribute excess CPD.

Does earnings transparency affect corporate payout decisions?

PurposeThe paper examines how earnings transparency affects dividend payouts for Indian firms. The authors also explore the channels through which earnings transparency affects dividend payouts.Design/methodology/approachThe authors employ panel data estimation with fixed effects to examine the role of earnings transparency on dividend payouts. The authors also use path analysis to explore causation. The paper uses a sample of more than 2000 Indian listed firms, over the period 2001–2016.FindingsThe authors report that firms showing grater earning transparency pay more cash dividend. Their results do not support the signaling hypothesis about the dividend. However, these results provide explicit support to the theory that corporate dividend policy is an outcome of information asymmetry. Moreover, the path analysis reveals the effect of earnings transparency on corporate payout through the financial constraint channel. The results are robust to idiosyncratic controls; alternate measures of payout; alternate models; endogeneity concerns; and the alternate channel of returning money to stockholders.Practical implicationsManagers should also examine earnings transparency while formulating an adequate dividend policy for their firms. This study also helps investors to identify dividend-paying stocks.Originality/valueThis study particularly contributes to the literature examining the effect of earnings quality on dividend payouts through its effect on financial constraints. We, therefore, connect two streams of research that contemplate the relation between accounting-based information variables and dividend payouts and the relationship between financial constraints and dividend payouts. Moreover, using path analysis uniquely, the authors provide evidence on the relative importance of both the direct and the indirect link.

Scalar mass dependence of angular variables in toverline{t}phi production

In this paper we explore CP discrimination in the associated production of top-quark pairs ( toverline{t} ) with a generic scalar boson (\U0001d719) at the LHC. We probe the CP-sensitivity of several observables for a varying scalar boson mass and CP-number, either CP-even (\U0001d719 = H ) or CP-odd (\U0001d719 = A), using dileptonic final states of the toverline{t}phi system, with \U0001d719 → boverline{b} . We show that CP-searches are virtually impossible for \U0001d719 boson masses above a few hundred GeV in this channel. A full phenomenological analysis was performed, using Standard Model background and signal events generated with MadGraph5_aMC@NLO and reconstructed using a kinematic fit. The most sensitive CP-observables are used to compute Confidence Levels (CLs), as a function of luminosity, for the exclusion of different signal hypotheses with scalar and pseudoscalar boson masses that range from m\U0001d719 = 40 GeV up to 200 GeV. We finalize by analysing the impact of a measurement (or limit) of the CP-violating angle in the parameter space of a complex two-Higgs doublet model known as the C2HDM.

Analysis of Signaling Hypothesis in Dividend Policy in Korea

본 논문의 목적은 한국에서 기업의 배당과 배당의 변화가 이익에 대한 설명력 및 예측력을 가지고 있는가에대해 분석하는 것이다. 전통적인 재무이론에서는 기업의 주가 및 주주의 투자 수익률은 기업의 배당정책과무관하다는 MM(Modigliani & Miller) 이론을 기초로 하고 있다. 이익은 투자와 기업의 자산으로부터 창출되는것이며 배당정책과는 무관하다는 것이다. 또한 배당을 줄이고 유보이익을 재투자하는 것이 기업의 이익 성장에더 직접적인 영향이 있는 것으로 분석되고 있다. 그러나 최근의 분석에서는 배당성향과 이익이 무관하지 않음을밝히는 연구들이 많아지고 있다. 높은 배당이 경영자들의 영업 환경의 개선과 이익 증가에 대한 자신감을반영한다는 소위 ‘배당 신호 가설’을 뒷받침하는 결과를 보이고 있다. 본 분석에서는 한국의 경우 위의 두이론 중 어느 쪽을 지지하고 있는가에 대해 몇 가지 실증 분석을 통해 검증해 보았다. 분석 결과는 한국의배당수익률과 이익 증가율 간에는 양(+)의 관계가 성립하고 있음을 알 수 있었다. 특히 배당수익률의 변화추이가 이익 증가율에 대한 설명력이 한층 더 높은 것으로 분석 되었다. 배당수익률이 높아지는 것은 이익증가의 신호로 파악할 수 있음을 시사하고 있다. 배당 무관련 이론에서는 배당을 줄이고, 그 현금으로 투자를늘려야 이익이 늘어날 수 있다고 주장한다. 하지만 배당을 줄여도 투자 증가로 이어지지 않을 경우 이익 증가효과가 보장되지 않는다. 반면 배당을 늘려도 다른 경로를 통해 투자가 늘어난다면 미래의 성장 잠재력을훼손하지 않을 수 있다. 즉, 배당 증가가 반드시 이익 둔화로 이어지지는 않을 수 있다. 주요 기간별로 나누어분석해 보아도 높은 배당수익률 혹은 배당수익률의 상승 추이는 이익 증가율과 양(+)의 관계를 가지고 있었다.각 통제변수들과의 관계에 있어서도 한국은 대기업일수록, 총자산 이익률(ROA)및 자기자본 이익률(ROE)가높을수록 이익 증가율이 높아지는 경향을 보였다. 과거 이익 증가율, 자산 증가율과 부채비율도 이익 증가율과양의 관계를 보였다.

Persistent Firing and Adaptation in Optic-Flow-Sensitive Descending Neurons

A general principle of sensory systems is that they adapt to prolonged stimulation by reducing their response over time. Indeed, in many visual systems, including higher-order motion sensitive neurons in the fly optic lobes and the mammalian visual cortex, a reduction in neural activity following prolonged stimulation occurs. In contrast to this phenomenon, the response of the motor system controlling flight maneuvers persists following the offset of visual motion. It has been suggested that this gap is caused by a lingering calcium signal in the output synapses of fly optic lobe neurons. However, whether this directly affects the responses of the post-synaptic descending neurons, leading to the observed behavioral output, is not known. We use extracellular electrophysiology to record from optic-flow-sensitive descending neurons in response to prolonged wide-field stimulation. We find that, as opposed to most sensory and visual neurons, and in particular to the motion vision sensitive neurons in the brains of both flies and mammals, the descending neurons show little adaption during stimulus motion. In addition, we find that the optic-flow-sensitive descending neurons display persistent firing, or an after-effect, following the cessation of visual stimulation, consistent with the lingering calcium signal hypothesis. However, if the difference in after-effect is compensated for, subsequent presentation of stimuli in a test-adapt-test paradigm reveals adaptation to visual motion. Our results thus show a combination of adaptation and persistent firing in the neurons that project to the thoracic ganglia and thereby control behavioral output.

The Impact of Change in CEO Ownership on Future Firm Performance

This paper investigates how a change in CEO ownership influences financial performance and market return in the long run. Using an accounting-based framework, we measure financial performance and changes in CEO ownership by using the public firms in the Taiwan Stock Exchange from 1996 to 2018. The findings in CEO ownership are consistent with the convergence-of-interests, entrenchment, and signaling hypotheses in different empirical tests. We find a positive relation between return on assets (ROA) and changes in CEO ownership when the CEO ownership is decreasing. In contrast, ROA is negative significantly associated with CEO ownership when the CEO ownership is increasing. Moreover, we also find that market performance is significantly positively associated with CEO ownership, which is consistent with the signaling hypothesis. Overall, this paper infers that a change in CEO ownership significantly affects future firm performance. Furthermore, investors respond positively to the negative signals released in the stock market. Therefore, the firms have poorer market performance simultaneously.

Chloroplast-to-nucleus retrograde signalling controls intercellular trafficking via plasmodesmata formation.

The signalling pathways that regulate intercellular trafficking via plasmodesmata (PD) remain largely unknown. Analyses of mutants with defects in intercellular trafficking led to the hypothesis that chloroplasts are important for controlling PD, probably by retrograde signalling to the nucleus to regulate expression of genes that influence PD formation and function, an idea encapsulated in the organelle-nucleus-PD signalling (ONPS) hypothesis. ONPS is supported by findings that point to chloroplast redox state as also modulating PD. Here, we have attempted to further elucidate details of ONPS. Through reverse genetics, expression of select nucleus-encoded genes with known or predicted roles in chloroplast gene expression was knocked down, and the effects on intercellular trafficking were then assessed. Silencing most genes resulted in chlorosis, and the expression of several photosynthesis and tetrapyrrole biosynthesis associated nuclear genes was repressed in all silenced plants. PD-mediated intercellular trafficking was changed in the silenced plants, consistent with predictions of the ONPS hypothesis. One striking observation, best exemplified by silencing the PNPase homologues, was that the degree of chlorosis of silenced leaves was not correlated with the capacity for intercellular trafficking. Finally, we measured the distribution of PD in silenced leaves and found that intercellular trafficking was positively correlated with the numbers of PD. Together, these results not only provide further support for ONPS but also point to a genetic mechanism for PD formation, clarifying a longstanding question about PD and intercellular trafficking. This article is part of the theme issue 'Retrograde signalling from endosymbiotic organelles'.

Projected sensitivity to sub-GeV dark matter of next-generation semiconductor detectors

We compute the projected sensitivity to dark matter (DM) particles in the sub-GeV mass range of future direct detection experiments using germanium and silicon semiconductor targets. We perform this calculation within the dark photon model for DM-electron interactions using the likelihood ratio as a test statistic, Monte Carlo simulations, and background models that we extract from recent experimental data. We present our results in terms of DM-electron scattering cross section values required to reject the background only hypothesis in favour of the background plus DM signal hypothesis with a statistical significance, Z, corresponding to 3 or 5 standard deviations. We also test the stability of our conclusions under changes in the astrophysical parameters governing the local space and velocity distribution of DM in the Milky Way. In the best-case scenario, when a high-voltage germanium detector with an exposure of 50 kg-year and a CCD silicon detector with an exposure of 1 kg-year and a dark current rate of 1×10−7 counts/pixel/day have simultaneously reported a DM signal, we find that the smallest cross section value compatible with Z=3 (Z=5) is about 4×10−42 cm2 (6×10−42 cm2) for contact interactions, and 2.5×10−41 cm2 (4×10−41 cm2) for long-range interactions. Our sensitivity study extends and refine previous works in terms of background models, statistical methods, and treatment of the underlying astrophysical uncertainties.

Market effects of private equity placement: Evidence from Chinese equity and bond markets

Research has provided empirical evidence for the stock market reaction toward private placement; however, similar research has not been conducted in terms of the bond market. Using the event study method, we empirically examine the explanatory power of the signaling, free cash flow, and wealth transfer hypotheses based on the reaction of the stock market, bond market, and firm abnormal returns to the private placement announcement. The results show that the stock market has a negative reaction toward private placement, whereas the bond market has a positive reaction. The results also show that the scale of private placement is correlated with the severity of the market reaction. Abnormal returns indicate no significant change both before and after the private placement, and they are unaffected by the scale of private placement. These results are consistent with the wealth transfer hypothesis; however, the market reaction is not attributable to the signaling hypothesis and the free cash flow hypothesis. Extensive research shows that the abnormal returns of private placement change dramatically in non-state-owned enterprises and firms with low credit rating bonds, whereas the bond maturity has no significant impact on the abnormal returns—the wealth transfer effect of private placement is stronger in non-state-owned enterprises and firms with low credit rating bond.

CEO Age and Firm Innovation: Evidence from IT Industry in Korea

This paper investigates the relationship between CEO age and firm innovation measured as innovation productivity (i.e., the number of patent applications) and innovation scope (i.e., technological proximity). Using a sample of 11,194 firm-year observations from the Korean stock markets for the sample period of 2002−2016, we document that a firm’s innovation productivity or innovation scope decreases in CEO age. We also report that younger CEOs in IT firms are more likely to participate in firm innovation than those in non-IT firms. Our main results are robust in Tobit, Poisson, and negative binomial regressions, in specification of CEO-fixed effect models, and in estimating new sample constructed by a propensity score matching. Taken together, younger CEOs in IT firms may be more motivated to signal their innovativeness to the market to be regarded as outstanding innovators or adventurous innovators, which supports managerial signaling hypothesis for young CEOs.